Legal Challenges of Running Virtual Classes and How to Overcome Them
Amanda E. Clark
May 16, 2025
‧
6 min read
Running virtual classes from your kitchen table might feel casual, but legally, it still counts as running a business. It really doesn’t matter what you’re doing… hosting group fitness sessions on Zoom, offering one-on-one tutoring over Google Meet, or selling recorded lessons through an online platform. At the end of the day, you’re stepping into territory that comes with real responsibilities.
One common misconception is that “online” means “less formal.” But when you start collecting payments, the personal data of students, and email addresses, or record sessions and share materials, you’re operating under the exact legal expectations as a traditional business. The Internet doesn’t come with a free pass.
However, wait just a minute. You don’t need to panic or hire a full-time lawyer. But you do need to know where the landmines are. In this article, we’ll walk through the most significant legal challenges online instructors face and how to deal with them, without losing sleep (or money).
From privacy rules to business structure, we’ll break it down into practical steps that help you protect yourself, your students, and your growing business.
If you're collecting your students' names, emails, or even video recordings, congratulations—you’re handling personally identifiable information (PII). And yes, that comes with legal strings attached.
Different states and countries have their own privacy laws. For example, the California Consumer Privacy Act (CCPA) and Europe’s General Data Protection Regulation (GDPR) both regulate how you store and share user data, even if your business is based elsewhere. Therefore, you could be on the hook if someone from California or the EU takes your class.
Here’s what you can do:
The bottom line is to treat student data with care. Keep this in mind even if you’re a solo instructor. Your virtual classroom should follow the same data protection principles as any professional business.
Before someone signs up for your virtual class–whether it’s yoga, coding, or public speaking—you need clear terms. Why? Because things go wrong. Internet drops, payment disputes happen, and not every student shows up ready to behave.
A solid Terms of Service lays out the rules of the road. At a minimum, include:
A waiver or disclaimer is necessary if your class involves physical activity, personal development, or other higher-risk content. This protects you from liability if someone gets injured or misuses your advice.
Not sure where to start? Tools like TermsFeed or legal template providers can help you draft professional-looking terms fast, without hiring a full legal team.
You put considerable time into creating your slides, videos, and downloadable guides. And you didn’t do all that work so someone can reuse them after taking your class! This is usually illegal, but only if you’ve taken steps to protect your work.
Copyright automatically protects original content you create, but doesn’t cover ideas, methods, or facts. That means the way you explain a concept is yours, but the idea itself might not be.
To help protect your content:
On the flip side, make sure you’re not accidentally infringing on someone else’s rights. Avoid using unlicensed music, stock photos, or curriculum materials you didn’t create or purchase a license for properly.
Being proactive with intellectual property keeps you credible and out of legal hot water.
Even if you’re a solo instructor teaching from your living room, you’re running a business–whether you’ve filed paperwork or not. That means you could be personally on the hook if something goes wrong.
Forming a Limited Liability Company (LLC) can help limit that risk. Let’s say a student claims they were injured during your virtual fitness class and decides to sue. The business is liable if you operate as an LLC, and your personal savings, home, or other assets are protected.
The LLC creates a legal separation between you and your business. It’s a smart move, and easier than many people think.
Setting up an LLC adds a layer of protection—and legitimacy—that’s worth every step.
Getting paid for your virtual classes feels amazing and is a testament to your hard work. However, when money changes hands, you enter the world of taxes and financial reporting. Yes, even if you’re teaching a few art class sessions a week on the side.
If you use platforms like Stripe, PayPal, or Teachable, you might receive a 1099 form at the end of the year. That means the IRS knows you’ve made income, and so should you. You’ll likely owe self-employment taxes, even if this isn’t your full-time gig.
To stay on the safe side, make a habit of tracking:
These details are key for accurate tax filing and can save you money by maximizing deductions.
Not sure where to start? A CPA or small-business tax pro can help. Or, try bookkeeping tools like QuickBooks or Wave to keep everything in one place and stress-free.
If your virtual class is open to the public, accessibility isn’t just thoughtful—it’s required by law. Under the Americans with Disabilities Act (ADA), businesses (yes, even solo instructors) must take reasonable steps to ensure content is accessible to people with disabilities.
That means your online classroom should be inclusive by design, not as an afterthought.
Here’s what to consider:
The good news? You don’t have to do it all manually. Tools like Otter.ai, Descript, or even the captioning features in Zoom, Canva, and YouTube can make accessibility easier to manage.
At the end of the day, making your class more inclusive helps everyone—and keeps you compliant, too.
Finally, just because you’re using a popular platform like Zoom, YouTube, or Teachable doesn’t mean you’re automatically covered from a legal point of view. Each of these tools comes with its own terms of service, and they’re not always in your favor.
For example, your content could get flagged, removed, or demonetized without warning, especially if it includes copyrighted material or violates community guidelines. And if that happens, you may have little recourse.
It’s important to remember: these platforms are tools, not your personal lawyer or administrator. You’re still responsible for compliance, privacy, and everything you present to your students.
Pro tip: Always back up your videos, course materials, and student records somewhere safe. If something goes sideways, don’t rely on the platform to keep your business running.
Running virtual classes might feel informal, but legally, it’s anything but. From clear refund policies to the right business structure, understanding your obligations helps you build a trustworthy, sustainable business. It also protects you from costly mistakes that could easily be avoided with the right setup and support.
We encourage you, though, not to let legal red tape hold you back. With a bit of preparation, some smart tools, and expert guidance when needed, you can focus on teaching without worrying about what you might be missing.
If you’re ready to streamline your virtual class business—think class scheduling, bookings, attendance, and payments—Classcard can help. Its feature-rich, easy-to-use platform is built to reduce admin stress so you can focus on what you do best. Ready to spend more time teaching and less time managing? Try Classcard today.